Comtech Announces Definitive Agreement to Sell Most of Its Satellite and Space Communications Business to Gilat

Key Points:

• Comtech Telecommunications Corp. has agreed to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks for $157.5 million, aiming to become a focused public safety technology company under the new Allerium brand.
• The transaction, approved by both companies' boards, is expected to close in Q4 2026 pending regulatory approvals, with Comtech retaining certain cyber-focused assets and accounts receivable from the S&S segment.
• Comtech plans to use the net cash proceeds from the sale primarily to reduce debt and strengthen the financial position of its remaining Allerium business, which focuses on next-generation public safety technologies including AI-enabled emergency response solutions.
• The company anticipates transition costs of $12-14 million in fiscal 2027 but projects annual cost savings of $11-13 million after the transition, with trailing twelve months net sales for retained businesses at approximately $249 million.
• Leadership highlighted the strategic focus on expanding recurring software and services revenue in public safety, with Allerium positioned to lead in evolving emergency communications beyond voice to data-centric coordination and real-time AI-enhanced decision-making.